June24, 2010

Washington, DC -- Congressman Howard L. Berman, Chairman of the House Foreign Affairs Committee released the following statement upon the overwhelming House passage of the conference report for H.R. 2194, the Comprehensive Iran Sanctions, Accountability, and Divestment Act:

“This legislation tells Iran and its trading partners that the United States means business about stopping Iran’s illicit nuclear activities,” Berman stated. “It greatly strengthens our nation’s overall sanctions regime regarding Iran, increasing the prospects that Iran will finally bear serious costs for its blatant defiance of the international community.

“In light of Iran’s rapid progress toward achieving a nuclear weapons capability, and Tehran’s repeated rejection of President Obama’s diplomatic overtures, the measures in this conference agreement – if implemented effectively by the Administration -- are our best, and only, hope for a positive and peaceful resolution of the nuclear issue. The two alternatives to strong sanctions are both horrible and horrifying: either employing the military option or, even worse, accepting the inevitability of Iran as a nuclear power.

“The Obama Administration has been a partner in this effort. The President has united the international community around the cause of a nuclear-weapons-free Iran, and this legislation greatly strengthens his hand.

“H.R. 2194 imposes sanctions on foreign entities that sell refined petroleum to Iran or assist Iran with its domestic refining capacity. It also plugs a critical gap in our sanctions regime by imposing sanctions on foreign entities that sell Iran goods or services that help it develop its energy sector – not just those that invest in that sector.

“The legislation contains a potent financial measure that has the potential to be a game-changer. This provision sanctions foreign banks that deal with Iran’s Islamic Revolutionary Guard Corps or other blacklisted Iranian institutions, including Iranian banks involved with WMD or terrorism. That means every foreign bank would have to make a fundamental choice: What’s more important, business with Iran or business with the US?

“The legislation also imposes penalties on Iran’s worst human-rights abusers and sanctions foreign entities that provide Iran with the means to stifle freedom of expression.”

Below is Chairman Berman’s full statement on the Conference Agreement as prepared for delivery on the floor of the House of Representatives:

Madam Speaker, the conference agreement for H.R. 2194 is by far the most comprehensive Iran sanctions legislation Congress has ever passed. This legislation greatly strengthens our nation’s overall sanctions regime regarding Iran and enhances the prospect that we will be able to dissuade Tehran from pursuing its nuclear ambitions in blatant defiance of the international community, as re-affirmed once again this month in UN Security Council Resolution 1929.

Like the House bill passed in December, the conference agreement imposes sanctions on foreign entities that sell refined petroleum to Iran or assist Iran with its domestic refining capacity. It also plugs a critical gap in our sanctions regime by imposing sanctions on foreign entities that sell Iran goods or services that help it develop its energy sector – not just those that invest in that sector.

Some believe that Iran has prepared itself for tougher energy sanctions by reducing its dependence on the import of refined petroleum. To ensure that our sanctions are as effective as possible, we added a potent new financial measure in conference that -- if applied effectively by the Administration -- has the potential to be a game-changer.

That provision sanctions foreign banks that deal with Iran’s Revolutionary Guard Corps or other blacklisted Iranian institutions, including Iranian banks involved with WMD or terrorism. Foreign banks involved in facilitating such activities would be shut out of the US financial system, and US banks would not be allowed to deal with them.

The conference agreement also requires the Executive Branch to pursue all credible evidence of sanctionable activity. Many of us have been profoundly unhappy over the years that successive administrations have failed to implement the 1996 Iran Sanctions Act. Our bill will change that situation.

Our bill will also put an end to the absurd practice of the US Government awarding contracts to companies engaged in sanctionable activity.

In addition, the legislation imposes penalties on Iran’s human rights abusers and sanctions foreign entities that provide Iran with the means to stifle freedom of expression. This portion of the bill will absolutely not terminate until Iran unconditionally releases all political prisoners; ends unlawful detention, torture, and abuse of citizens engaged in peaceful political activity; and punishes the abusers.

Finally, the conference agreement will help empower Iran’s democratic opposition by exempting from our embargo the transfer of technologies that can help them overcome the regime’s apparatus of oppression.

I don’t know if sanctions will work in bringing Iran’s leadership to its senses, but I do know this: Doing nothing certainly won’t work. In light of Iran’s rapid progress toward achieving a nuclear weapons capability, and Tehran’s repeated rejection of President Obama’s diplomatic overtures, the measures in this conference agreement – if implemented effectively by the Administration -- are our best, and only, hope for a positive and peaceful resolution of the nuclear issue. The two alternatives to strong sanctions are both horrible and horrifying: either employing the military option or, even worse, accepting the inevitability of Iran as a nuclear power.

The U.S. Congress needs to do everything it can to ensure that we avoid both of those miserable results. We have taken some steps in the past, but we can do far more today by voting to pass the enhanced sanctions in H.R. 2194.